With Black Friday imminent, British consumers will grab early bargains in a bid to save some cash. However, with a boom in Buy Now Pay Later options and other credit schemes, even the savviest of savers can be fooled into crippling debt. As UK families reporting they are likely to spend 25% more this Christmas in order to make up for lockdown*, and 26% of the UK reporting they have no savings**, it’s more important than ever that consumers know when they’re getting into debt.

New money management app HyperJar has launched an industry-first A Concise Dictionary of Debt. The bite sized guide highlights the reams of jargon aimed at enticing consumers to take on debt they wouldn’t ordinarily sign up for. With featured terms such as ‘no money? no problem’, ‘freedom to buy’ and ‘payment empowerment’ used to market ‘debt-for-shopping’ at a time when our cash flow is being challenged by the pandemic, it is high time the real meanings of these phrases were laid bare. And the definitions are pretty simple: they ALL mean debt. HyperJar flips debt culture on its head by encouraging a ‘save now, buy later’ approach to money management that offers a sustainable, happier relationship with our finances and reduces reliance on debt.

Among the 160 terms used to market loans and buy, now pay later schemes are:

No money? No problem
Say hello to what you want
Love it, get it
Elevate your shopping game
Shop like a Queen
Shop with confidence
Payments to fit your budget
Pay over time, easily
Spread the cost
Freedom to pay how you prefer
Responding to the dictionary’s launch, Sue Anderson of the UK’s leading debt charity Step Change said: “The way we talk about debt really matters. It’s no accident that the marketing of credit tends to go large on convenience, ease and lifestyle benefits – yet there’s still a perceived stigma about falling behind, even though it’s usually triggered by a change in circumstances.

Building up financial resilience gives some protection against the risk of problem debt, and tools that help us to do that are really helpful.”

HyperJar’s Chief Growth Officer, Natalie Malevsky, said: “It’s time the ‘save now, buy later’ movement took back some of these words and sentiments. Let’s have a positive refresh of the way we think about spending our money, without the financial hangover of debt-for-shopping. There’s nothing more empowering than being on the front foot with our money.

The positive effects of splitting out budgets and naming savings goals are well researched. Our early customers tell us that adding a fraction more friction to their spending – taking a bit of time to think about what they want to spend in future – really works. Visualising and allocating their money like this gives them clarity, control and confidence.”

HyperJar’s own research shows that pre-Covid, 26% of us had no financial emergency buffer and that 19% of the population now admit to having no savings left at all. With Buy Now Pay Later schemes more prevalent, there continues to be a rise in consumer debt.

Key Research Statistics**:

19% (8,921,000) agree that, due to the Covid-19 pandemic, they are in their worst financial position ever
70% (31,500,000) say that their bank doesn’t help them budget and plan day to day finances
52% (25,093,000) agree that the current banking structure leaves them with no incentive to save
47% (18,981,000) agree that since the pandemic, they now acknowledge the importance of tackling bad financial habits
19% (8,737,000) report that the fallout from Covid-19 has left them with no savings at all
26% (12,522,000) say that, even before Covid-19, they had no savings or emergency buffer
26% (12,715,000) admit to having no emergency funds to fall back in the future
18% (8,594,000) believe their finances are the least organised part of their life
Sue Anderson of Step Change notes: “We can’t always fully control what happens in life. That’s where debt advice charities come in – no-one needs to suffer alone if debt does happen, and there are practical solutions to deal with it.”

To reward forward-thinking planners, HyperJar account holders who choose to commit money ahead of spending with the app’s partner brands get a 4.8% Annual Growth Rate on every penny, calculated and added daily. These partners currently include Shell, Boden, Virgin Wines, Dyson and Not On The High Street. The locked-in money must be spent with the business it is committed to, but there is no time limit and the balance keeps growing for up to 12 months.